Catalyst Investors Closes Private Equity Funds Raises $170 Million in Two Funds
New York, NY, September 5, 2007 – Catalyst Investors, a private equity fund with a focus on media, telecommunications and related Internet services, is pleased to announce the final closings of two funds – Catalyst Investors II, LP and Catalyst UK Partners, LP with $170 million in aggregate committed capital.
Catalyst Investors II, LP expects to invest in approximately 10 –15 companies over the life of the fund and has made four investments to date. The Fund will invest in small- and medium-sized businesses within traditional and growth sectors of the media and communications and related Internet industries. Investors in the Fund include a broad range of leading institutions as well as current and former senior executives of leading companies within the sectors targeted by the Fund. Brian Rich, Managing Partner of Catalyst said, "The final closing of these Funds marks an important milestone for Catalyst. The media and communications and Internet services industries continue to offer some of the best investment prospects today in terms of organic industry growth, and the size of our target companies makes them ideal for consolidation and roll-up opportunities."
The Fund's initial investments are:
Advantage Business Media (www.advantagemedia.com) – Advantage Business Media consists of a diversified portfolio of print and electronic brands serving more than 1.3 million professionals responsible for driving today's emerging technologies in Science, Electronics, Communications, and Manufacturing. These include Bioscience Technology, Drug Discovery & Development, ECN, Food Manufacturing, Medical Design Technology, Pharmaceutical Processing, Product Design & Development, R&D, Scientiic Computing, Surgical Products, Wireless Design & Development and Wireless Week.
Aplus.net (www.aplus.net) – A recognized industry leader since the Internet's commercial start in 1995, Aplus.net specializes in helping small businesses build an online customer base with a comprehensive range of services that includes web hosting and design, dedicated servers, online marketing, e-commerce, domain name registration and much more. Aplus.net has been awarded many honors for excellence, including the prestigious CNET Editors' Choice Award, and has been featured in top U.S. business publications such as Forbes, Entrepreneur, Black Enterprise, and PC Magazine.
Denali Spectrum Manager – Denali was formed to acquire Advanced Wireless Services (AWS) spectrum in FCC auction No. 66 in partnership with Leap Wireless International ("Leap") (NASDAQ: LEAP). It was the winning bidder of 58 million POPs at a net cost of $274 million. The 10 MHz license covers the Great Lakes region (Chicago, Detroit, Cleveland, Minneapolis, Milwaukee, etc.).
Oneida Broadband (www.oneidacom.com) – Capitalizing on the imminent advent of 4G wireless technology, Oneida has acquired, and intends to build-out and operate broadband wireless access networks using next-generation WiMAX technology. Oneida was founded by telecommunications veterans Harold Furchtgott-Roth, former FCC Commissioner, and Bill Wilson, former Arch Wireless EVP and CFO.
Catalyst UK Partners, LP is a special purpose vehicle which was created to effect a single targeted acquisition, which has been completed.
Ryan McNally, General Partner of Catalyst said, "We are well positioned to identify and invest in unique business opportunities with significant growth prospects in these dynamic sectors. We believe our investment model produces superior returns through all types of investment cycles." Fellow General Partner Chris Shipman added, "We have been very effective at researching industry growth trends, and buying or building leading companies that take advantage of such trends."
BerchWood Partners acted as global placement agent for the limited partnership offering.
About Catalyst Investors
Catalyst Investors is an investment firm specializing in the media and communications and related Internet industries. The firm was founded in April 2000 by Brian Rich, Chris Shipman and Ryan McNally. The management team also includes Tyler Newton (General Partner) and Todd Clapp (Principal). The team has worked together for over a decade (including predecessor funds) and has been involved in these industries since the late 1980s. Collectively, they have invested in almost 50 transactions. Catalyst Investors, LP, the firm's $110 million debut fund, has been a top-performing fund among its 2000 vintage peers. To date, Catalyst has invested in some notable trends and companies including, Telemundo, the second largest television broadcasting network in the United States targeting the growing Hispanic market; MessageLabs, the world-leading centrally managed (SaaS-based) e-mail security service that protects corporate and governmental users from undesirable content; TCP Communications, a developer, owner and operator of wireless communications towers; Aloha Partners, the largest owner of 700 MHz wireless spectrum licenses in the U.S.; and Clearwire Corporation (NASDAQ: CLWR), the leading WiMAX service provider in the U.S. For more information on Catalyst, go to www.catalystinvestors.com.
About BerchWood Partners
BerchWood Partners is a global private equity placement agent with offices in New York, London, Boston, Chicago and San Francisco. The firm's success is predicated on fund selectivity, full-team involvement and long-term relationships with the most active private equity investors from around the world. BerchWood's team is comprised of professionals with more than 100 years of collective capital-raising experience. For more information on BerchWood Partners, go to www.berchwoodpartners.com.
Brian A. Rich
Catalyst Investors LLC